Why Did the US Stock Market Crash? $2 Trillion Wiped Out

In late October 2026, a technology-led Wall Street selloff erased roughly $2 trillion from the Nasdaq-100’s market value. The immediate trigger was weaker-than-expected company results, with major technology firms revealing large artificial intelligence outlays and some warning of slower growth, while inflation and expected December Fed rate increases added pressure. Intel fell nearly 29% on Friday after an explosion at its Israeli plant disrupted production and its fourth-quarter revenue forecast missed expectations. Alphabet lost over $500 billion in market value on Thursday after quarterly results showed $9.1 billion in negative free cash flow, meaning cash outflows exceeded inflows, amid faster spending on AI infrastructure; Reddit fell 29% after warning Google’s AI search answers were reducing traffic.